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ALULA — Saudi Minister of Finance Mohammed Al-Jadaan said that emerging economies have become a major engine of global growth. Speaking at the opening session of the 2026 AlUla Conference for Emerging Market Economies, he underscored the importance of exchanging practical experiences and developing realistic policies to address mounting economic challenges.Al-Jadaan highlighted that emerging and developing economies now account for nearly 60 percent of global GDP at purchasing power parity and more than 70 percent of global growth, with their share of the global economy having doubled since 2000. He added that the ten emerging economies within the G20 alone currently contribute more than half of global growth. The minister noted that the Kingdom’s hosting of this conference, in partnership with the International Monetary Fund, comes at a time of profound transformation in the global economy. Al-Jadaan affirmed that the Kingdom’s experience over the past decade has yielded three key lessons. The first is that macroeconomic stability is not a constraint on growth but its essential foundation. The second is that a sound financial framework, clear medium-term fundamentals, and disciplined debt management create the necessary space for investment and reform, particularly amid volatile international conditions.Al-Jadaan elaborated that structural reforms do not deliver results unless institutions possess the capacity to implement them effectively. He emphasized that political credibility is built through execution rather than plans alone, and through strong governance, transparency, and the ability to translate strategies into tangible outcomes.The third lesson, he noted, is that international cooperation has become increasingly vital in a fragmented global landscape. In this context, he stressed that multilateral institutions, effective oversight mechanisms, and global financial safety nets are critical to supporting emerging and developing economies in the face of recurring shocks.The finance minister also pointed to the increasingly complex and fragmented environment confronting these economies, marked by rising debt levels, slowing trade growth, and heightened vulnerability to geopolitical shocks. More than half of low-income countries, he noted, are either experiencing debt distress or at risk of it, while global trade growth has declined to roughly half its level during the COVID-19 pandemic. At the same time, capital flows remain volatile and highly sensitive to global monetary conditions.Al-Jadaan stressed that these challenges are not merely cyclical, but reflect deeper structural shifts that demand credible and coordinated policy responses—above all, responses tailored to the specific circumstances of each country. He emphasized that the objective of the conference is not to issue declarations, but to exchange practical experiences, prioritize implementation, and address real constraints, while recognizing the diversity of emerging economies and avoiding a one-size-fits-all approach.The minister noted that partnerships with multilateral institutions, particularly the International Monetary Fund and the World Bank Group, constitute a central pillar—not only as providers of financing of last resort, but also as trusted advisors, facilitators of dialogue, and custodians of global economic cooperation. He urged participants to engage with candor, adopt a forward-looking perspective, and remain focused on solutions, expressing his hope that the discussions at the AlUla Conference would help shape both collective and national responses to the rapidly evolving challenges facing the global economy.It is worthy to note that the second edition of the 2026 AlUla Conference for Emerging Markets Economies is organized jointly by the Ministry of Finance and the International Monetary Fund. The conference brings together finance ministers, central bank governors, and economic policymakers from around the world. The conference is taking place amid fundamental transformations in international trade and financial systems. Discussions will focus on the challenges of slowing growth, rising uncertainty, and mounting pressures on emerging market economies.
